Widely known for his 1992 blockbuster film- “The Mighty Ducks”, the famous former child actor-Brock Pierce-is now a Bitcoin enthusiast who is setting the pace towards Crypto-powered world. Brock Pierce has recently bought an Amsterdam mansion using a BTC-backed mortgage.
This is the first-ever mortgage of its kind and experts believe that this may be the beginning of quadrillion dollar untapped use-case of Cryptocurrencies. The Crypto space is currently dominated by banks and other financial institutions that have been accused on numerous occasions of distorting the mortgage market to the detriment of home buyers.
The Amsterdam mansion purchase was $1.3 million and Bitcoin was used to settle the payment in real time.
Nexo Aided The Purchase
The former actor now-turned-Crypto-enthusiast used a Swiss Cryptocurrency startup-Nexo- as a payment gateway for the mansion.
Nexo offers wallet services that allow users to send and receive payments with a limit of $2 million. It is also a multicurrency platform that supports 45 fiat currencies on a near-instant time of 24hours.
One of the two founders of Nexo, Antoni Trenchex, reveals that the 38-year-old Brock Pierce backed the entire mortgage that he had secured with Bitcoin and made the payment via Nexo.
Brock Pierce Trusts In Bitcoin
Despite the volatility in the Cryptocurrency market, Brock Pierce holds 95% of his wealth in Cryptocurrencies. Many would prefer to diversify their portfolios away from Cryptos but the star is unusually convinced that the future of finance is in the Digital Token.
Brock Pierce, who is also the chairman of Bitcoin Foundation, is set to benefit tremendously in the BTC recovery that is on high gear after the April fools hoax that has enabled BTC price to break the $5,000 level of resistance for the first time in months.
As a venture capitalist, Crypto traders can get some cues from him on the direction that the market is taking.
The Practice Of Using Cryptos As Collateral Is Gaining Traction
Brock Pierce in November 2018 took a loan worth $3 million to get cash for purchasing a different property in Amsterdam. Antoni Tenchev of Nexo reveals that the star had not intended to use his BTC as the first option to get cash but that was the most optimal option at that time.
Antoni is taking the case of Brock to notify Cryptocurrency holders that Nexo is offering Crypto-backed loans. The term for cash advances is such that a loan is half the value of the collateral to take into account any likely Crypto volatility to make the Nexo business model viable. For instance, a loan of $10,000 can be issued at collateral of 2 BTC at the current price of $5,137/BTC.
The New Service Is Convenient
Using Crypto as a mortgage or lending collateral will now become known as a niche financial product thanks to Brock Pierce. Further adoption of the concept would herald tokenization of real estate, and lending into a “quadrillion-dollar-market.”
Mike Novogratz projects that real estate markets in New York, Colorado, and Aspen are already a step ahead in tokenization and other markets such as Amsterdam are set to follow.